| Author | Message | ||
     T9r |
Okay, tax season is coming and I can already feel my refund in the mail. This is like my Christmas present! I actually enjoying doing my taxes to see the refund, not how much I actually pay out. So I will probably have a good amount coming back, I like it that way. I was thinking about what I could/should invest some of the money in. Any advice? Stock?, Bonds? | ||
| Eurotwins |
Nutrisystem,Stock up 1400% last year and reasonably priced...John | ||
| Ftd |
Adjust your withholding so you owe a little in April and invest the extra take home $$ every paycheck by dollar cost averaging into some stock mutual fund. Giving Uncle Sam an interest free loan every year is not smart business/investing. JMO Frank | ||
| Johnnylunchbox |
Ftd - I hear you, but some of us like to spend. So a forced savings is better than no savings. But you are right. If you are disciplined enough to save the dough, giving Uncle Sam a free loan is not the best thing to do. | ||
| T9r |
I'm taking baby steps here Ftd. I'll try doing more of what you said in the future. Thanks. | ||
| Ryker77 |
Unless your debt free then investing IMO is not smart. a loan at 7% or an investment at 7% just = each other. | ||
| Johnnylunchbox |
Ryker77 - but who can really avoid some kind of debt? Not all debt is bad. Mortgage interest is tax deductible, as is the interest on home equity loans if you decide to finance some things yourself. However, credit card debt is the worst. So if you have credit card debt...pay it off with a loan, and tear up your cards, then start investing. | ||
| Ryker77 |
mortgage interest is only tax deductible.. or at least worth it. "IF" you can itemize and that is over what 7,500 worth of items. IMO if your paying that much a year in interest then saving a few dollars in a mutal fund and earning a few dollars in not wise or worth the effort. That extra 500.00 put into your house loan will nock down the principle and you then save $$$$$ over the years. Do some simple math and you see. | ||
| Oldog |
I took a finincial management course by Dave Ramsey, ( check the churches in your area ) well wotrth the 100$ spent I saved it by learning to purchase smarter and understand the pitfalls of credit Ryker is dead on, knock down the principal on a home loan, BUT get out of debit first, if you owe on credit cards/ small loans 8% on my 10k sled loan winds up costing me 16k ? see Happy new year Oldog | ||
| Oldog |
T9r interesting term there I've heard that one before, good line of thought I have one you may want to think on "snow ball" as a method of getting out of debit | ||
| Kdan |
I had a buddy once who was very diligent about saving and had a very nice little nest egg. He died of cancer on his 45th birthday and his ex-wife (who left him for her boyfriend the day after he was diagnosed) got everything. She's driving a 'Vette. I drop a hwy flare on her bermuda grass every February. Save for your future, but make sure your future is something you want to live through. | ||
| T9r |
Hey, that advice works for me. I'd like to make the most of the money I'm getting back. Put it towards the principal on my house. Scenerio: Own a house(mortgage), a couple vehicles and a couple bikes. Just have the Home loan, small equity loan and almost paid vehicle loan. No credit card debts. Again, very helpful. | ||
| Road_thing |
T9r: If you can't make up your mind, I can send you a deposit slip... rt | ||
| Oldog |
BHAWHAHAHAHAHAHAHHAA DAYM! THING!  (still laughing) | ||
| Brucelee |
You are asking investment advice on a MC board from folks you don't know. Why would you expect sound and professional advice here? | ||
| Lake_bueller |
I'd love to say mine is going toward a track bike but.....in reality, it will go back into the house. Some for home improvements to increase the house's value; some to pay down the principle. We're really good about keep our credit cards under $1k so that's not an issue. But d@mn...a track bike just sounds better  | ||
| Johnnylunchbox |
Mr. Lee - it's all anecdotal, none of it is binding, and I'm sure he just wants to hear opinions. | ||
| T9r |
The advice here is free... I could go to a broker or money managment person and pay for the same advice. I value life experience much more. Many folks here also think like I do. That is why I ask here. Motorcycle folks tend to have some of the best advice in life. It's scary how Johnnylunchbox has been answering folks questions... with my exact answers. TOO FREAKIN' WIERD MAN. | ||
| Johnnylunchbox |
Great minds think alike I guess.  | ||
| Brucelee |
Free advice is worth every penney you pay for it! | ||
| Ftd |
"Free advice is worth every penney you pay for it!" So, only high priced financial professionals can give useful advice?? I guess one can only conclude that the qualifications of an expert increase with direct proportion to the amount that he/she charges for their services. Not. | ||
| Ryker77 |
people who charge for services tend to only give advice that BENIFTS them. Personal trainers for example get about 30-50 per hour. They will just give you enough info to keep you coming back each month. Go to a free web chat board and your LEARN why and how. Just like when I ask for advice on bike repairs. Free on this website. Or I could pay the stealership $$$$$$ to do the job | ||
| Oldog |
FTD said I guess one can only conclude that the qualifications of an expert increase with direct proportion to the amount that he/she charges for their services. - NOT! too good there FTD!  I guess I need to raise my rates to enhance my standing in the market! (Message edited by oldog on January 05, 2006) | ||
| Brucelee |
The absolute best advice I have ever seen on investing was gleaned from a book I have. Cost $11.99 plus tax. However, the author was in fact, quite expert! Seems he won the Nobel Prize in Economics. | ||
| Johnnylunchbox |
Bruce - In all seriousness what would the name of that book be? Some of us might be willing to spend the ducats, to learn a little something. | ||
| Brucelee |
http://www.indexinvestor.com/ Check this site out for tons of free info. The book that I referenced turned me on to Index Funds as a way to grow money. Good stuff. Enjoy! | ||
| Brucelee |
BTW-I personally subscribe to the theory of reducing debt wherever possible assuming there is not some superior ROI on an investment that clearly trumps debt. In my own case, I started paying down my mortgage many years ago, tossing most all my bonus money, tax refunds at the mortgage balance. My house is now paid off. This is a very very nice feeling. Some financial analysts would not endorse this strategy, some would. But then again, some FAs don't have a house free and clear. To each his own, no? | ||
| Johnnylunchbox |
Brucelee - some would argue that maintaining 30 year mortgage, while paying extra towards the principal is not necessarily a bad thing. Since the mortgage payment, which is primarily only interest for many years, allows you to get more of your own money back from Uncle Sam that you can then throw back into paying down the principal. This way you have the lower payments ammortized (sp?) over 30 years, yet you can schedule your own payoff by putting as much or as little as you want towards the principal each month. I guess it's 6 of one or half dozen of the other. Just a thought. (Message edited by johnnylunchbox on January 06, 2006) | ||
| Brucelee |
What many folks forget is that there is no tax advantage on the mortgage interest payments UNLESS one itemizes deductions on Schedule B. There are a surprisingly high number of folks who do not itemize or are hit with the AMT with eliminates or reduces the deduction. In these cases, the tax break is well, gone. Painful, especially if one does not realize it. | ||
| Johnnylunchbox |
Brucelee - Is there a reason why someone would not be able to deduct mortgage interest. In other words I realize the IRS sets conditions that limit mortgage interest deduction. However, I was under the impression that anyone could deduct mortgage interest. What you're are saying if I understand correctly is that a lot of people are missing out due to sheer ignorance (and I'm not using the word ignorance as a disparaging term)? Is that correct? | ||
| Brucelee |
There are two basic reasons why the mortgage interest deduction many not actually be deductible. If the total of your itemized deductions is less than the "standard deduction" it makes no sense to itemize and hence, you really don't get any added tax value from your interest payment. In the second case, if you make "too much money" according to the US govt., you are subject to the AMT tax, which effectively phases out itemized deductions, exemptions and the like. Many folks do not know this and are in essence, not entitled or getting the mortgage tax benefit they think they are. Make sense? | ||
| Ryker77 |
Like me. I bought a cheap starter house. So other than about the first 1-2 years of the loan I was just barely able to write off the interest on the loan. Now that I have just a small amount to pay. I pay less than 3000 a year in interest. So I do not even have enough to itemize. What corporate/big government would like is for me to be a sucker, refianance my house and buy a big fat SUV with the extra. Then pay interest to the bank for the rest of my life. Thus keeping me from ever actually improving my self. | ||
| Brucelee |
"What corporate/big government would like is for me to be a sucker, refianance my house and buy a big fat SUV with the extra. Then pay interest to the bank for the rest of my life. Thus keeping me from ever actually improving my self" well, lets be fair. Some players that you mentioned want you to spend more, etc. However, some, like banks and brokerage houses, want you to save and invest. It is all up to you. But, you have already figured out an important element of the tax system, that the standard deduction already gives you credit for a certain amount of deductions whether you have any interest expense or not. Good stuff. |
